Why Investors Shouldn't Panic About Roblox's Disappointing Q4 Report
Despite an optimistic build-up to Q4 earnings, shares in metaverse pioneer Roblox are plummeting following a disappointing quarter.
Feb. 16, 2022

Fun fact: The metaverse market size is predicted to reach as much as $800 billion by 2024 -- it was worth just $46 billion in 2020.

Roblox (NYSE: RBLX) investors will be wishing that Q4 was just a simulation, but unfortunately, there's nothing virtual about its numbers.

Is the metaverse dream in for a rude awakening? 

How did Roblox do?

As a writer, I'm incapable of enjoying numbers, whether good or bad, so let's keep the numeric information from Roblox's Q4 brief:

  • Revenue (bookings): $770 million v.s. $772 million expected
  • Loss per share: $0.25 v.s. $0.13 estimated
  • Daily active users: 49.5 million -- up 33% year-over-year

Ok, a little bit of good to top it off, but those losses must be a tough pill to swallow for investors. After all, this open-world gaming/development platform, which allows users to interact and play over the internet, is supposed to be the pioneer of the metaverse, right? 

That may be correct, but one can't simply say "metaverse" and suddenly be a trillion-dollar business -- sorry Zucks. Our modern conception of the metaverse -- read all about what it is free in the MyWallSt app here -- is barely a toddler.

Meta (formerly Facebook), has tried to steal the metaverse spotlight -- hence the name -- and has dedicated billions towards its pivot. However, while Zuckerberg & Co. are clearly serious about this endeavor, they are still years behind Roblox. So, for anyone concerned about a Big Tech overshadowing, just think of streaming. 

Amazon, Disney, HBO, and more were expected to destroy Netflix with their streaming offerings. Now, name me a single service from this lot that can match Netflix's user experience? 

None -- and trust me, a metaverse is a LOT more complicated to build from scratch than a user-friendly content library. Big Tech won't be overtaking Roblox soon.

Roblox may be hurting, but it's still a leader in the metaverse. This shouldn't be taken lightly, and investors just need to be a bit more patient. 

Virtual Rome wasn't built in a day.

The Home of Successful Investing.

© 2023 MyWallSt Ltd. All rights reserved.







This website is operated by MyWallSt Ltd (“MyWallSt”). MyWallSt is a publisher and a technology platform, not a registered broker-dealer or registered investment adviser, and does not provide investment advice. All information provided by MyWallSt Limited is of a general nature for information and education purposes, and you should not construe any such information as investment advice. MyWallSt Limited does not take your specific needs, investment objectives or financial situation into consideration, and any investments mentioned may not be suitable for you. You should always carry out your own independent verification of facts and data before making any investment decisions, as we cannot guarantee the accuracy or completeness of any information we publish and any opinions that we publish may be wrong and may change at any time without notice. If you are unsure of any investment decision you should seek a professional financial advisor. MyWallSt Limited is not a registered investment adviser and we do not provide regulated investment advice or recommendations. MyWallSt Limited is not regulated by the Central Bank of Ireland. MyWallSt Limited may provide hyperlinks to web sites operated by third parties. Your use of third party web sites and content, including without limitation, your use of any information, data, advertising, products, or other materials on or available through such web sites, is at your own risk and is subject to the third parties' terms of use.